HBOS, the British parent of Bank of Scotland Ireland, reported a 17 per cent rise in 2005 profits yesterday, as revenue growth outpaced increased costs, but its shares fell as the good news had been well signalled, analysts said.

HBOS, the fourth-biggest bank in Britain and the biggest mortgage lender, also said it continued to take a cautious stance on lending and its share of new mortgages fell to 11 per cent in the second half of last year.

Its net share of new mortgages for 2005 was 14 per cent, compared to 17 per cent in 2004 and its 22 per cent overall share of the market.

The bank reported that 2005 pre-tax profit rose to £4.81 billion (€7.06 billion) from £4.11 billion in 2004.

Shares in HBOS were down almost 5 per cent to £10.17 at the close in London.

"The results are fine. The issue is they are not telling us anything we don't already know ... ," said James Leal, analyst at brokerage Teather & Greenwood. - (Reuters)